Property Tax Relief Focusing Too Much on Making Others Pay Our Way

The ongoing discussions of alternative tax schemes and property tax relief in South Dakota expose one deep flaw in South Dakota’s political character: we keep looking for someone else to pay our way.

Consider often reasonable Representative Will Mortenson’s (R-24/Pierre) argument for raising sales tax to lower property taxes:

A consumption tax like the sales tax is the best replacement revenue. It is fair and consistent across the state. It allows frugal, conservative spenders to avoid paying some taxes, if they are willing to consume less. Another benefit: out-of-staters pay sales tax, from truckers passing through to visiting tourists to out-of-state corporations buying goods and services in South Dakota.

While it may only account for 10 or 15 percent, tens of millions of dollars would be paid by out-of-staters in sales taxes that are now paid 100 percent by South Dakota homeowners in property taxes. Owing to that fact, the property-tax-for-sales-tax swap represents a clear and substantial tax cut for South Dakotans [Rep. Will Mortenson, “There’s a Simple Solution to South Dakota’s Property Tax Dilemma,” The Dakota Scout, 2025.10.21].

Radicals share mainstreamer Mortenson’s desire to soak our guests. Former legislator Julie Frye-Mueller and her fellow radical anti-government activists are proposing a retail transaction tax to replace property taxes. One of Frye-Mueller’s big selling points for her new tax is that visitors would cough up 64% of the revenue. (In its fiscal note, the Legislative Research Council estimates visitors would pay 59% of the retail transaction tax.)

In seeking property tax relief, many public figures are telling us out-of-state visitors should pay more of the cost of our public goods—parks, roads, police, firefighters, schools—that they use for a few days if at all but that we depend on every day to sustain our communities. Sure, if you come to South Dakota, you should chip in for the nice roads and well-educated tour guides and chefs you enjoy while visiting. But if you stay in South Dakota, live and work here, you have an even greater civic duty to support the community that makes your life, labor, and leisure possible and pleasurable with your regular tax payments.

Curiously, the moderate Mortenson goes even further, saying that the opportunity to evade his tax makes it a better tax. “Frugal, conservative spenders” like Will and me benefit as much from well-funded roads and schools as Rolex-wearing sauna mavens like Kristi Noem. Why should our choice to buy less stuff entitle us to bear less of the burden of maintaining civil society?

Even the most responsible leaders in South Dakota think shifting our civic duty to others is just and holy:

There may be headaches associated with having so many tourists running around, but the benefits are huge. Tourism generated 17% of all state sales tax collections last year – that’s tax revenue that we get to charge to out-of-staters, rather than to South Dakotans. Tourists provided almost $400 million in funding to state and local governments. Without those visitors, each South Dakota family would have to pay an additional $1,100 in taxes – thank God that isn’t the case [Gov. Larry Rhoden, weekly propaganda, 2025.05.02].

Yes, thank whatever God you believe in that you don’t have to pay your share.

Notice a funny little contradiction in Governor Rhoden’s soak-the-outsiders thesis (which is part of his pitch for his property tax relief plan, too). He invokes the “headaches” tourists cause to suggest that the taxes visitors pay simply cover the costs they impose on us, but he concludes if those visitors didn’t come (if they exercised their Mortensonian right to evade taxes by eschewing vacations at the River and in the Hills) and cause us those “headaches”, we’d still need the same amount of tax dollars. Which is it, Larry? Are visitors just paying for costs they impose on our civic institutions, or are we just dodging taxes by making others foot the bill?

Actually, a little of each is true, but the latter is troubling. We should stop peddling the idea that we can dodge taxes by making others pay our way. Our leaders should instead work harder to constantly remind citizens that paying taxes is their civic duty.

Freedom isn’t free: you have to pay for it, with your tax dollars, not someone else’s.